Morpheus Trading: After breaking out from a base around $18, and stalling just above $20, Guggenheim Shipping ETF (NYSEARCA:SEA) pulled back to find support at the rising 10-week moving average.
Last week’s price action followed through on the previous week’s bullish reversal candle, but stopped just shy of breaking out to new highs.
Whether $SEA breaks out this week or in a few weeks from now, there is very little overhead above $20. Once it clears that level, it could potentially run to the next major resistance level (around $25):
We remain long iShares MSCI Japan ETF (NYSEARCA:EWJ) from our pullback entry in early October (around $10.70).
Although $EWJ has failed to breakout, the price action has continued to tighten up within the base over the past few weeks, especially above the 50-day moving average.
On the chart below, note the higher “swing lows” during the base as well.